Hi all... Long time lurker and first time poster. If I have posted in the incorrect area please move...
First some background info...
I purchased a new build house in an estate back in early 2006 at the height of The Celtic Tiger paying €235,000 for a standard 3 bed semi d. The estate is located about 30 miles from Cork City in a small village.
I bought using a 100% mortgage over 35 years and I have a tracker mortgage.
Before the house was completed and I was making stage payments I met my future husband and we were married in 2007.
The house was completed but my husband already had a house in Cork City so we lived there as we were both working in Cork City...
I put my own house on the market and thought I had it sold but it dragged on and on and by the time the purchaser pulled out the bottom had fallen out of the market so the house could not be sold.
The builder of the estate went bust, and while the house is located in the second phase, the third phase was never finished so the estate over all has an unfinished look. Today I would estimate its value at about €90,000 based on other sales.
For the last 9 years I have paid the mortgage while burying my head in the sand with regards to the house. I paid the NPPR and property tax and raised my kids in Cork.
My husband has been urging me to rent out the house for years and this year I said I would finally do it... I looked at this a number of years back but the houses in the estate were getting about €350 a month rent and I didn't think that worth investing the money to make it habitable for such a low return.
However rents have risen and I decided to make it habitable and rent it out.... I spent €12k on the usual, tiles, carpets, floors, washing machines fridge etc... and the house is now rented for €700 a month.
I googled my obligations as a landlord, registered as a landlord with the PRTB and contacted revenue on line to deregister for TRS...
Then the bombshell dropped, I received a historical TRS bill from Revenue for €11,550 with two weeks to pay.
I know ignorance is no excuse but I never knew, because the house was unoccupied I was not entitled to TRS.
I guess my question is, is there any way to off set this tax bill? Unless I borrow it (I already borrowed to kit out the house) I have no way of paying it. Will revenue allow some leeway with regards to paying?
Also, myself and my husband are jointly accessed and he has no mortgage on his house so would we be entitled to TRS on one house?
As it stands I am a reluctant landlord, with a kitout loan to payback and now a large revenue bill to contend with.
Any advice appreciated, and feel free to ask me any questions if it brings clarity.
First some background info...
I purchased a new build house in an estate back in early 2006 at the height of The Celtic Tiger paying €235,000 for a standard 3 bed semi d. The estate is located about 30 miles from Cork City in a small village.
I bought using a 100% mortgage over 35 years and I have a tracker mortgage.
Before the house was completed and I was making stage payments I met my future husband and we were married in 2007.
The house was completed but my husband already had a house in Cork City so we lived there as we were both working in Cork City...
I put my own house on the market and thought I had it sold but it dragged on and on and by the time the purchaser pulled out the bottom had fallen out of the market so the house could not be sold.
The builder of the estate went bust, and while the house is located in the second phase, the third phase was never finished so the estate over all has an unfinished look. Today I would estimate its value at about €90,000 based on other sales.
For the last 9 years I have paid the mortgage while burying my head in the sand with regards to the house. I paid the NPPR and property tax and raised my kids in Cork.
My husband has been urging me to rent out the house for years and this year I said I would finally do it... I looked at this a number of years back but the houses in the estate were getting about €350 a month rent and I didn't think that worth investing the money to make it habitable for such a low return.
However rents have risen and I decided to make it habitable and rent it out.... I spent €12k on the usual, tiles, carpets, floors, washing machines fridge etc... and the house is now rented for €700 a month.
I googled my obligations as a landlord, registered as a landlord with the PRTB and contacted revenue on line to deregister for TRS...
Then the bombshell dropped, I received a historical TRS bill from Revenue for €11,550 with two weeks to pay.
I know ignorance is no excuse but I never knew, because the house was unoccupied I was not entitled to TRS.
I guess my question is, is there any way to off set this tax bill? Unless I borrow it (I already borrowed to kit out the house) I have no way of paying it. Will revenue allow some leeway with regards to paying?
Also, myself and my husband are jointly accessed and he has no mortgage on his house so would we be entitled to TRS on one house?
As it stands I am a reluctant landlord, with a kitout loan to payback and now a large revenue bill to contend with.
Any advice appreciated, and feel free to ask me any questions if it brings clarity.